The Chapter 13 Process-Part 10

10 Oct The Chapter 13 Process-Part 10

So, the plan is complete. You’ve made your last payment to the trustee as required. What happens now?

Although practices vary from district to district, in most areas, the trustee assigned to the case will do most of the work upon completion of the plan. He or she will issue a discharge a notice to you, your attorney, and to all of the unsecured creditors that you have completed the plan, made your payments and anything unpaid that was included in the plan as an unsecured debt is now discharged.

The notice usually contains a date when the discharge was effective. This can either be the date the last payment was received by the trustee, or the date that the last payments went out from the court to the creditors. Either way, sometime after that, the trustee will issue a final accounting showing how much was paid into the plan and where it all went. Save this it can be very important if you get into an argument with a secured creditor as to what is still owed.

Lastly, the trustee will apply to the court relieving him or her of their duties in your case and requesting that it be closed. This is the final act closing of the case.

Douglas Jacobs is a California bankruptcy attorney and partner in the Chico law firm of Jacobs, Anderson, Potter & Chaplin. Since 1988, Mr. Jacobs has taught Constitutional law and Debtor-Creditor/Bankruptcy law at the Cal Northern School of Law. He has served as Dean of Students since 1994. He is a frequent lecturer on the subject of consumer bankruptcy law, and has spoken at both state and national levels.